Justice News

Filed false tax returns and stole clients’ tax refunds

A Killeen, Texas, resident pleaded guilty today to aiding and assisting in the preparation and filing of a false tax return and aggravated identity theft, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.

According to court documents, Shermin Marshall devised a scheme to file false federal income tax returns on behalf of his clients. Marshall admitted that he falsified specific items on his clients’ tax returns in order to fraudulently increase their tax refunds. Marshall further admitted that he directed clients’ refunds to be deposited into financial accounts that he controlled and, unbeknownst to his clients, Marshall stole a portion of those refunds. Marshall also admitted that to receive some of the fraudulent refunds he opened financial accounts in his clients’ names, without their permission. Marshall admitted that his actions caused a tax loss of $397,367.

Marshall faces a maximum statutory penalty of up to 36 months in prison on the aiding and assisting count, plus a two-year mandatory sentence for the aggravated identity theft count. He also faces a period of supervised release, restitution and monetary penalties.

Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Robert A. Kemins and David Zisserson, who are prosecuting the case.

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.